Corporate Sustainability, Social Responsibility and Environmental Management: An Introduction to Theory and Practice with Case Studies

207 Pages·2017·2.12 MB·English

Mark Anthony Camilleri
Corporate
Sustainability,
Social Responsibility
and Environmental
Management
An Introduction to Theory and Practice
with Case Studies
Corporate Sustainability, Social Responsibility and
Environmental Management
Mark Anthony Camilleri
Corporate Sustainability,
Social Responsibility and
Environmental Management
An Introduction to Theory and Practice
with Case Studies
MarkAnthonyCamilleri
DepartmentofCorporateCommunication
UniversityofMalta
Msida,Malta
ISBN978-3-319-46848-8 ISBN978-3-319-46849-5 (eBook)
DOI10.1007/978-3-319-46849-5
LibraryofCongressControlNumber:2016962705
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DedicatedtomywifeAdrianaandtoourkids,
Michela and Sam.
Foreword
Mypersonalengagementwithcorporatesocialresponsibility(CSR)goesbackover
40years.Theideawasonlymentionedduringmyacademicdegreeyearsinthelate
1960sandearly1970s,anditwashardlypopulartotalkaboutorwriteaboutthen.
My broadest and deepest exposure began in the early 1970s when I was asked to
teach a Business and Society course because the regular professor was on leave.
Fortunately, he had assembled a book of readings titled Issues in Business and
Society: Readings and Cases (1971), and William T. Greenwood, the editor, and
mycolleague,wasoneoftheearlybookauthorsonthistopic.
I was employed out of my doctoral program to teach business policy; now we
callitstrategicmanagement.But,whenItookaninterestinthebusinessandsociety
areainwhichCSRwasakey,embeddedconcept,Iremembermydepartmenthead
telling me thatI wouldnever get promoted pursuing thattopic becauseit wasnot
evenafieldyet.Thetopicexisted,butithadbarelyreachedthelevelatwhichitwas
being studied or taught with any regularity within courses much less in its own
courses. It was not being discussed much in the business world either. In other
words,thefieldwasnotafieldwhenIbegan.Itwasjustafewindividualsthinking
aboutCSRandevenfewerwritingaboutit.
Mydepartmentheadwaspartiallyright,butoverthefollowingdecadeInotonly
got promotions but had publishing opportunities that opened up for me, and this
gave meaplatformtodelvedeeper intothe topicandIproceeded todoso.Since
therewereveryfewacademicspursuingCSRandrelatedtopics,itwaseasytobe
onthecuttingedge,andthenLittle,Brownpublishersinvitedmetoprepareabook
ofreadingsandthenatextbookonthesubject.
DesiringamanagerialapproachbecauseIwasdeeplyconcernedaboutapplica-
bility andimplementation, IpublishedManagingCorporateSocialResponsibility
in 1977 and followed it with Business and Society: Managing Corporate Social
Performancein1982.ItwouldnotbeuntilthefirsteditionofBusinessandSociety:
Ethics and Stakeholder Management was published in 1989, however, that I was
beginningtobelievethistopichadstayingpower.Now,Iamcompletingthe10th
edition of this book, currently titled Business and Society: Ethics, Sustainability
vii
viii Foreword
and Stakeholder Management, 10th Edition (Cengage Learning, 2017) with Jill
A.Brown,BentleyUniversity,andthelateAnnK.Buchholtz.Annhadbeenwith
me on six previous editions before she tragically passed away just as the 10th
edition was under way. Fortunately, a rising and successful professor, Dr. Jill
Brown,wasabletojoinmeascoauthorforthe10thedition.
Another huge step for CSR was taken when I was invited to join three other
authors,undertheexecutiveeditorshipofKennethGoodpaster,whenwewereable
topublishacomprehensivehistorytitledCorporateResponsibility:TheAmerican
Experience(CambridgeUniversityPress,2012)whichIcoauthoredwithKenneth
Lipartito, James Post, and Patricia Werhane. We were elated when this book was
recognized with the 2014 Social Issues in Management Best Book Award in the
AcademyofManagement.Whatwasespeciallyuniqueaboutthisvolumeisthatit
was underwritten by a business man, philanthropist, Harry Halloran, of
Philadelphia.
Today, there are an exploding number of scholars writing on the topic of CSR
and complementary concepts. My professional involvements have exposed me to
hundreds of excellent scholars and I was so encouraged when I learned about the
writingsofDr.MarkCamilleri.First,Iwasintroducedtosomeofthearticleshehad
written, with which I was impressed. Second, we began corresponding with one
another. I was invited but not able to join him in any publications because of my
textbook revision schedule, but I saw clearly that he was the type of scholar and
writer with whom I could easily have a close working relationship. Then, I was
introducedtothecontentsofthisbook,giventheopportunitytoreadit,andinvited
towritethisForeword,whichIamhonoredtodo.
Frommyperspective,Dr.Camillerihaswrittenwhatclearlyprovidesafirst-rate
introductiontoasubjectsuchasCSR.First,hefittinglyclarifiesthatthelanguageof
CSRisreferredtounderanumberofdifferentconceptsorframeworksandamong
themarecorporatecitizenship,sustainability,environmentalmanagement,business
ethics,andcreatingsharedvalue.But,hechoosestocenteronCSRastheirreduc-
iblecoreofthesetopicsandtheninvokestheothernomenclaturewhenappropriate.
Iagreewiththisdecision.IthinkCSRisandwillcontinuetobethecenterpieceof
thesecompetingandcomplementaryframeworks.
InPartIofthebook,heintroducestheCSRnotion,coversinternationalpolicies
and regulatory instruments for reporting on CSR, and relates it to integrated
marketingcommunications,whichareessential.Iespeciallyvaluedhisdiscussions
of CSR communications using digital and social media and corporate Web sites.
Theseclearlyaretheplatformsuponwhichcompaniesandconsumershavecometo
dependinthistechnology-intensiveage.Hisdiscussionofsociallyresponsibleand
sustainableinvestinggetsattheheartofthequestionofwhetherCSRpaysoffina
financial sense. An important dimension of the CSR business case is easily made
when one considers the growth and success of the socially conscious investing
movement.Ifinvestorsthinkitisagoodthing,andithasproventobe,thenitisnot
surprising that socially responsible investments have grown. Finally, in Part I he
treats what I think is the current challenge of global CSR and that is responsible
supply chain management. Companies institutionalizing CSR within their parent
Foreword ix
entities are not enough. They need to integrate it into their upstream and down-
streamsupplychainstobetrulyandcomprehensivelyresponsibleandeffective.In
short, Dr. Camilleri provides an excellent introduction to the CSR agenda that
academics,companies,andotherstakeholdersfacetoday.
The case studies presented in Part II are both an integral part of understanding
theCSRconceptandabonustothedevelopingdiscussion.Inthefirstcasestudy,he
explorescorporatecitizenshippoliciesandprinciplesintheUSA.Then,hewisely
contraststhiswithenvironmental,social,andgovernancedisclosuresinEurope.To
addevenmorespecificity,heexaminesresponsiblegovernanceinEuropeanbanks.
Ofvaluetoallreaders,henextprovidesacasestudyoncreatingvalueinbusiness
andeducation.Finally,hepresentsacasestudyonclosingtheloopofthecircular
economy for CSR and sustainability. I found this case study to be especially
enlightening and timely as the idea of the circular economy brings CSR and
sustainability into a system’s wide framework that is likely to be a top priority
themeinthedecadesahead.
ThetopicofCSRhasabrightfutureandIthinkthisbookwillopenituptoboth
novice readers and those already knowledgeable in the field. Scholars and practi-
tioners alike will find the book essential reading. Dr. Camilleri makes the topic
accessible,relevant,andinteresting.
CSR’sbrightfutureisbuiltuponseveralkeytrendsthatprovideafirmfounda-
tion for growth. First and foremost is business’s acceptance. This is a most
significant factor. Without businesses’ buy-in, the CSR framework would not
have gotten the traction it has experienced. Except for brief periods when CSR
was somewhat controversial, business as an institution has increasingly accepted
the idea that it is a multipurpose social institution whose goals extend beyond
financial returns. Enlightened businesses today are coming to accept that their
missionistoserveconstructivelytheneedsofsocietytothesatisfactionofsociety.
If they do this, in a sustainable fashion, financial returns will follow. Businesses
today are striving to be adaptive-learning entities, and they understand that their
legitimacyistiedtopublicacceptanceandsupport.
A second powerful trend has been global growth in both established and
emergingeconomies.InEurope,thegrowthofinterestinCSRhasbeenunparalled,
especiallyoverthepastdecade.TheCSRframeworkisquicklycatchingoninAsia,
SouthAmerica,andAfrica.InternationalconferencesonCSRarenowtheorderof
theday.NottoolongagoIattendedoneoftheGlobalCSRconferencesheldevery
other year at Humboldt University in Berlin, and I saw firsthand the heightened
inquisitivenessaboutCSRfromaroundtheworld.HardlyaweekgoesbythatIdo
not receive some e-mail inquiry about the topic from unexpected parts of the
world—sometimes from areas I never imagined were interested in CSR theory
and practice. But, now they are. I will look forward to recommending
Dr.Camilleri’sbooktothem.
A third prominent force behind CSR’s growth and proliferation has been aca-
demic acceptance and proliferation. The multiplying organizations, conferences,
meetings, books, articles, blogs, awards, academic chairs, and student interest all
have pointed to a robust future in academe. Schools and colleges other than
x Foreword
businessschoolsareincreasinglytakingakeeninterestinCSR,ethics,sustainabil-
ity,andstakeholdertheory.Schoolssuchasjournalism,law,ecology,socialwork,
education, and others are beginning or continuing their use of these concepts and
frameworks. The idea that organizations in all walks of life realize that their
missionsextendbeyondtheirimmediate,utilitarian,purposeforbeingisbecoming
widespread.
This book will be popular and widely read because it centers on CSR and
sustainability, topics that I believe continue to be the heart of socially conscious
capitalism,management,andinvesting.Stakeholderstheworldoverareclamoring
for moreinformation about CSR, andthisbookprovides it ina clearly, authorita-
tively, easily understood format that is expertly and expressively written.
Dr. Camilleri’s book will take its rightful place as a valued and well-read entry
intothebooksthathaveaddressedthesetopicsandIstronglyrecommendittothe
readerandrestconfidentthatitwillhaveahugeimpact.
TerryCollegeofBusiness,University ArchieB.Carroll
ofGeorgia,Athens,GA
USAJuly2016
Preface
Responsiblebehaviorsareincreasinglybeingembeddedintonewbusinessmodels
and strategies that are designed to meet environmental, societal, and governance
deficits. Therefore, the notions of Corporate Sustainability, Social Responsibility,
and Environmental Management have become very popular among academia as
corporations are moving beyond transparency, business ethics, and stakeholder
engagement.
This book provides business students andscholars with a broad analysis of the
subject of Corporate Social Responsibility (CSR). It builds on the previous theo-
reticalunderpinningsoftheCSRagenda,includingCorporateCitizenship(Carroll,
1998; Matten & Crane, 2004; Waddock, 2004), Creating Shared Value (Porter &
Kramer, 2011, 2006), Stakeholder Engagement (Freeman, 1984), and Business
Ethics (Crane & Matten, 2004) as it features the latest Corporate Sustainability
and Responsibility (CSR2.0) perspective (Visser, 2010). These recent develop-
ments imply that the organizations’ commitment to responsible behaviors may
representatransformationofthecorporationintoatrulysustainablebusinessthat
is adding value to the business itself while also adding value to society and the
environment.
This“new”propositionisaneasytermthatmayappealtobusinesspractitioners.
CSR2.0 is linked to improvements in economic performance, operational effi-
ciency,higherquality,innovation,andcompetitiveness.Atthesametime,itraises
awareness on responsible behaviors. Therefore, this promising concept can be
considered as strategic in its intent and purposes, as businesses are capable of
being socially and environmentally responsible “citizens” while pursuing their
profit-makingactivities.Carroll(1979)affirmedthatthebusinesseshaveeconomic
responsibilities as providing a decent return on investment to owners and share-
holders; creating jobs and fair pay for workers; discovering new resources; and
promoting technological advancement, innovation, and the creation of new prod-
uctsandservicesalongwithotherobjectives.
Lately, there is similar discourse in many international fora, conferences, sem-
inars, and colloquia about corporate sustainability and responsible behaviors.
xi